The Telecom Regulatory Authority of India (TRAI) is currently reassessing its stance on the regulation of over-the-top (OTT) communication services, such as WhatsApp, Zoom, and Google Meet. This decision comes in response to the significant growth and widespread use of these services throughout India, particularly during the Covid-19 pandemic.
What are OTT Services?
Over-the-top (OTT) media services refer to online content providers that deliver streaming media as a standalone product. Often associated with video-on-demand platforms, these services extend to include audio streaming, messaging services, internet-based voice calling solutions, and other types of digital content that depend on data usage. Over time, these services gained immense popularity in India, with the monthly wireless data usage escalating around 156 times between 2014 and 2022.
Current Regulatory Status of OTT Communication Services
At present, there’s no specific regulatory framework for OTT communication services in India. TRAI issued numerous consultation papers on the matter since 2015, but hadn’t made any decisive recommendations or regulations. In September 2020, TRAI advised against regulatory interventions for OTT platforms, delegating control to the market forces. Yet, they held that consistent monitoring was essential, with intervention necessary at an “appropriate time”.
The Need for Regulation of OTT Communication Services
Regulation of OTT communication services bears significance for several reasons. Firstly, it ensures fair competition between telecom service providers (TSPs) and OTT platforms. While TSPs must comply with multiple laws and pay the government for providing voice and SMS services, OTT platforms provide similar services without these obligations, leading to unfair competition. Secondly, regulating OTT communication services is vital for national security and public order, helping prevent the spread of misinformation and criminal activities.
A Look at the Draft Telecommunications Bill, 2022 and OTT Services
The Draft Telecommunication Bill, 2022 seeks to merge three existing telecom laws in India and includes OTT communication services within the definition of telecommunication services. This bill stipulates that OTT communication services should acquire a license and adhere to the same rules governing conventional telecom players, ensuring quality of service and robust security measures.
Telecom Regulatory Authority of India (TRAI): An Overview
Established on 20th February 1997, TRAI was born out of the Telecom Regulatory Authority of India Act, 1997. Its primary objective is to foster growth conditions for telecommunications in India. This body regulates telecom services, including tariff fixation/revision, which was previously managed by the Central Government. Located in New Delhi, TRAI comprises a Chairperson, two full-time members, and two part-time members, all appointed by the Government of India. The tenure for these members is three years or until they reach 65 years of age, whichever is earlier.
